Investors who desire customized cash flows often need to pay high fees to investment professionals, insurance companies or financial institutions to create customized investment instruments.
Furthermore, investors are often forced to make a tradeoff between relatively high and stable cash flows with low expected long-term returns versus relatively low cash flows with high expected long-term returns. Specifically, investors are often forced to make a trade-off between investing in fixed income-styled instruments versus equity-styled instruments.
Furthermore, companies may desire to create investment vehicles that are attractive to investors with certain investment requirements, or may want to make adjustments to the cash outflows associated with dividends without disadvantaging any shareholders or signaling distress to the marketplace.
Accordingly, the inventor herein has recognized the following: (i) a need for an improved system and method for allocating dividends to a plurality of classes and sub-classes of shares that addresses the need for customized investment instruments, and (ii) a need to help companies craft investment vehicles for specific investors that can be supported by the companies' current and future dividend policies.